CROWDSTART CAPITAL FAQ
Why a token?
For token holders: Instead of investing money, the token can be traded and increase in value. For CSC: The tokenization of the startup acceleration process allows us to fund services, development and consulting, all in the field of blockchain technology, for startups. For Startups: We provide discounted advisory services and mentoring within blockchain entrepreneurship in exchange for tokens.
What’s in it for me if I buy a token?
The advantage of becoming a tokenholder lies in the opportunity to participate in the blockchain ecosystem. The blockchain will shape the future of many industries and therefore it is reasonable to participate in the growth potential of this technology. As a tokenholder you could profit in two ways:
First, the token value may increase and you may trade it on a cryptocurrency exchange. This potential increase in value would probably stem from the fact that the tokens represent consulting and development services which CSC provides to the startups which we accelerate.
Second, as tokenholder you are granted a 20% discount on CSC consulting and development services in case we agree on a commercial contract.
What is the difference between CSC and the traditional business angel or VC model?
The classic business angel usually invests enough money to get a startup in the door with a VC. The VC, in turn, invests enough money to (hopefully) get significant adoption and scaling done for the product to be market-ready. Both, business angel and VC, require equity in return for their advising and funding.
CSC does not provide startups with cash but with development and consulting services equivalent in value to the support provided through a traditional investment. The startup gets consulting and development services for free and does not have to sell shares against these. The CSC activities will be financed by the sale of tokens representing these services. At the end of the acceleration process, CSC will be rewarded for it’s services with a success fee in case of a financial transaction, s.a. an acquisition or another investment by a third party.
What is the difference between CSC and crowdfunding platforms like Kickstarter or Startnext?
There is no huge difference between a crowdfunding campaign and the Crowdstart Capital token sale. Crowdfunding platforms typically require users to contribute money up to a certain goal in the hope that enough other users will contribute to jointly fund a product that everyone wants being built. When you participate in such a campaign you may or may not get anything in return. CSC offers a tradeable token which may increase in value and entitles the tokenholder with a 20% discount of consulting and development services.
How much money will be raised?
CSC’s goal is to raise an amount of at least a value of 1 million EUR. The number of tokens in supply limit the amount to be raised at a value of 25 million EUR.
How will the money be divided?
CSC will provide selected startups with consulting and development services in the amount of 250.000 EUR to 750.000 EUR each, in return for a success fee in case of a financial transaction.
How does CSC decide which startups/projects to support?
CSC, in collaboration with Datarella, has deep experience in developing blockchain solutions for a web of incumbent industry partners. We know how to target successful exits in large companies because we are already working with these companies to meet their needs. Therefore, CSC has a superior understanding of which projects could be steered for exit into particular corporate niches.
CSC selects startups that match existing market needs. The startup’s founders have to be completely dedicated to their projects and have to agree upon the CSC acceleration process and principles. The selection process is supported by the CSC advisory board, composed of senior industry and technology experts.
How can I apply for my project to be supported?
Applications can be submitted via our application form.
Can I suggest any kind of project, commercial, charity, whatever?
No. you can’t.
CSC supports projects commercial blockchain projects or projects which could meet industry needs. Selected startups must be willing to go through a corporate exit process. That said, startups with diverse backgrounds are encouraged to apply. It is our experience that brilliant ideas can often be pivoted to meet different contextual needs.
What kind of projects are supported?
- Blockchain projects in the following areas are of interest for us:
- Industry 4.0 (IoT, Automation, Supply Chain)
- Energy (Solar, Wind)
- Legal Tech (AI, Compliance)
- Healthcare (Data Accessibility, Security)
- Space (Earth Observation, Satellites)